ITASCA, Ill., Dec. 22, 2004 -- Enesco Group Inc. (NYSE:ENC), a leader in the gift, collectible, and home decor industries, today announced the Company will stabilize its current Enterprise-wide Resource Planning (ERP) system by using the core components of its former legacy software system. Enesco also announced plans to upgrade certain modules to provide advanced features and capabilities required by the business.

The decision was based on current and ongoing costs required to support the existing ERP platform launched in January 2004, and the Company's focus on meeting customer needs. Enesco does not expect the recent successful implementation of its new mobile sales and web-based, e-commerce technology for retailers to be negatively impacted by these changes.

Enesco will incur accelerated depreciation charges related to its current ERP system of approximately $1 million in the fourth quarter of 2004 and approximately $6 million in the first six months of 2005 related to the expected discontinuance of use of the current ERP system. The Company expects the costs related to the implementation and enhancements to be between $1-2 million and anticipates the changes will be fully completed in the third quarter of 2005.

"Clearly, the problems we have encountered with our ERP situation have been disappointing," said George Ditomassi, Enesco's Interim CEO. "Based on the recent cost projections required to continuously support the ERP system, we believe it is in the best interests of Enesco, our customers, and our shareholders to return to the stable foundation of the previous system. We will make modifications, where necessary, for advanced capabilities that will improve performance and user effectiveness."

About Enesco Group, Inc.

Enesco Group, Inc. is a world leader in the gift, collectible and home decor industries. Serving more than 40,000 customers globally, Enesco distributes products to a wide variety of specialty card and gift retailers, home decor boutique as well as mass-market chains and direct mail retailers. Internationally, Enesco serves markets operating in Europe, Australia, Mexico, Asia and the Pacific Rim. With subsidiaries located in Europe and Canada, and a business unit in Hong Kong, Enesco's international distribution network leads the industry. The Company's product lines include some of the world's most recognizable brands, including Precious Moments, Walt Disney Classics Collection, Nickelodeon, Heartwood Creek, Halcyon Days, Lilliput Lane, Border Fine Arts, among others. Further information is available on the Company's web site at www.enesco.com.

This press release contains various forward-looking statements that are based on management's current assumptions and beliefs and upon information currently available to management. The Company has tried to identify such forward-looking statements by use of such words as "expects," "intends," "anticipates," "could," "estimates," "plans," and "believes," and similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those anticipated, estimated, expected or projected. Important factors that may cause actual future events or results to differ materially and adversely from those described in the forward-looking statements include, but are not limited: the Company's success in developing new products and consumer reaction to the Company's new products; the Company's ability to secure, maintain and renew popular licenses, particularly our licenses for Precious Moments, Cherished Teddies, Heartwood Creek and Disney; the Company's ability to grow revenues in mass and niche market channels; the Company's ability to identify and close on strategic acquisitions; changes in general economic conditions, as well as specific market conditions; fluctuations in demand for our products; manufacturing lead times; the timing of orders and shipments and our ability to predict customer demands; inventory levels and purchase commitments exceeding requirements based upon incorrect forecasts; collection of accounts receivable; changes in the regulations and procedures effecting the importation of goods into the United States; changes in foreign exchange rates; price and product competition in the giftware industry; variations in sales channels, product costs or mix of products sold; and, possible future terrorist attacks, epidemics, or acts of war.

In addition, the Company operates in a continually changing business environment and does not intend to update or revise the forward-looking statements contained herein, which speak only as of the date hereof. Additional information regarding forward-looking statement risk factors is contained in the Company's reports and filings with the Securities and Exchange Commission. In light of these risks and uncertainties, the forward-looking statements contained herein may not occur and actual results could differ materially from those set forth herein. Accordingly, you should not rely on these forward-looking statements as a prediction of actual future results.

Ashton Partners
Nathan Elwell (Investors), 312-553-6706
nelwell@ashtonpartners.com
or
Enesco Group Inc.
Donna Shaults (Media), 630-875-5464
dshaults@enesco.com